Example on Method of Rank Correlation - 2

Solved Problem: The coefficient of rank correlation between the debenture prices and share prices of a company was,-f0.8. If the sum of the squares of the difference in ranks was 33, find the value of n.

Solution: The coefficient of rank correlation between the debenture Example :

The co-efficient of rank correlation of marks obtained by 10 students in statistics and accountancy was found to be 0.2. It was later discovered that the difference in ranks in the two subjects obtained by one of the students was wrongly taken as 9 instead of 7. Find the correct value of co-efficient of rank correlation.

—(Shivaji Univ., B.Com , 1982)

r_s = 0.2 n = 10

r_s = 1 – (6 ∑d2)/(n2-n) or

0.2 = 1 - (6 ∑z2)/(1000-10) = 1 - (6 ∑d2)/990 or

(6 ∑d2)/900 = 1 – 2 = .8 or

6 ∑d2 = (990× .8)=792.0

∑d2 = 792/6 = 132

The corrected value of ∑d2 would be 132 – (9)2 + (7)2 = 100

The correct value of r_s would be 1 - (6 ∑d2)/(n2-n) or

1 – (6×100)/990 = 0.39

Live Online 24*7 Homework Assignment Help in Method Of Rank Correlation

Transtutors provides online homework Help or Assignment Help in method of rank correlation. Transtutors has a vast panel of highly experienced statistics tutors, who can explain different concept of method of rank correlation to you effectively.